ServiceNow, Endeavor Group, Align Technology: Top Stocks
ServiceNow (NOW) stock pops in extended hours trading — after closing in the red — on better-than-expected third-quarter earnings and current quarter outlook. Ari Emanuel's Endeavor Group (EDR) is reportedly exploring strategic options Lastly, Align Technology (ALGN) shares dive in after-hours trading as it cuts its revenue forecast.
Yahoo Finance Live’s Julie Hyman runs down several trending stocks in Wednesday’s after-hours trading session.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
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JULIE HYMAN: Let's take a look at some of the trending tickers after hours, some of them having to do with what's going on with earnings. One of those is ServiceNow. Now, you see the company's shares popping in extended hours trading here up by some 4.68% intraday, though they did fall by about 4%.
The company coming out with its outlook for the current quarter that appears to be better than what analysts had been anticipating. Subscription revenue, it says, is going to be $2.32 billion in the current quarter. That's a little bit higher than what analysts had anticipated. Operating income, profit margin, it's predicting at 27.5%, which is in line with estimates. Now, this is one of those big enterprise-facing companies that we have been watching closely, right, to see what read they're giving us. And the CEO Bill McDermott, always ebullient, has said that the company has already signed several multiple million-dollar deals for a new product that it has released, which includes some capabilities for generative AI, of course, the buzzword of the day.
Non-earnings related, Endeavor Group, we are watching that entertainment and talent agency powerhouse saying it's exploring its strategic options here. Those shares are up almost 12% in extended trading today. The company didn't go public that long ago, right? If you look at, let's say, a two-year chart here, you can see the trajectory.
It IPO-ed back in 2021, back in April of 2021 at 24 bucks a share and now is only trading at under 18. So that explains why they want to look for options here. Ari Emanuel, the CEO, saying, "We believe in evaluation of strategic alternatives is a prudent approach to ensure we're maximizing value for our shareholders." At the same time, the company says it's not interested in exploring selling a stake in TKO Group Holdings, which remember is the marriage of WWE and UFC.
And then finally, Align Technology, the Invisalign company down 21 and 1/2%. And you're looking at the two-year chart there, which is also an ugly one. It's down 57% in that period of time.
The company cutting its net revenue forecast for the full year. Now the upper end of that forecast is $3.85 billion, the lower end of it was $3.97 billion, so hence the decline that we're seeing here. The company says it expect to lay off workers as well. And so the company says both clear aligner and systems and services revenue will be down sequentially. They're blaming a challenging macroeconomic environment for doctors and patients.
